Kerala Budget 2022-2023: What to expect, focus areas and more

It is worth mentioning that the state budget is the second Pinarayi Vijayan government's first full budget.   

As Finance Minister KN Balagopal is expected to announce the state budget on Friday, it is expected to implement a programme to boost productivity in the plantation industry through different crops. The objective is to grow fruits in orchards and wine, and other value-added goods.

Meanwhile, the welfare pension is expected to be raised from Rs 1,600 to Rs 1,700 in the budget. It would also be fascinating to watch how the state government addresses inflation, unemployment, and different development initiatives. It is worth mentioning that the state budget is the second Pinarayi Vijayan government's first full budget. 

KN Balagopal will be searching for cost-effective alternatives. The budget would most likely respond to the state government's initiatives to resuscitate the cash-strapped economy in the coming fiscal year. If no major projects or programmes are announced, the public will be less shocked.

The state administration is anxious for cash to counter an impending economic disaster. Revenue generation and budgetary shortfalls have exceeded expectations. Furthermore, the federal government's GST reimbursement to the states would be significantly reduced from May 31. Overall, the state anticipated a loss of roughly Rs 15,800 crore in the 2019 fiscal year. Apart from that, the Russian-Ukraine war's economic issues, the financial load imposed by the K-Rail project, the industrial corridor, and other projects would represent a significant challenge to the administration.

However, the state's tax income is predicted to grow by 10%. The state would be pushed to eliminate wasteful spending while increasing output. Meanwhile, it is expected that the state would have to raise taxes in a variety of areas. The previous budget did not include any tax increases. However, it is unclear which sectors might face tax increases. The government intended to reform the tax agency in order to increase tax collection and combat fraud. Furthermore, steps would be taken to ensure appropriate GST collection.